The proposal is said to be at an early stage with few details about how the venture would be funded by the council, who earlier this month announced plans to axe 300 jobs due to central government cuts.

However Mr Stewart said the authority was looking at different options including the possibility of running their own payments,payroll and reserves through the bank as well as persuading local firms to use it.

It's understood that council bosses have also spoken to David Fishwick, a millionaire businessman who set up his own bank as part of a Channel 4 series in 2012 called 'Bank of Dave.'

Mr Stewart said: “Setting up a bank isn't easy. It takes a huge amount of commitment, work and – above all – cash.

“That’s why Salford is exploring innovative ways to help create and sustain a local public interest bank for the common good of Salford people and organisations.

“We’re looking at the potential of running our payments, payroll and reserves through a Bank of Salford – to ensure that taxpayer’s money is being used to improve the lives of our people.”

The Mayor added: “This is a radical agenda with a practical focus on lifting people out of the mire of debt pushed on them by unscrupulous lenders.

“People who can’t afford to live day-to-day deserve the support of their communities.